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Personal loan market • Benzinga

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A personal loan is a great financial tool that can be used to start almost any plan. Personal loans can be for any purpose, unlike mortgages or auto loans which can only be used for homes or cars.

If you are looking for a personal loan, a loan market is a great place to look. A loan marketplace will automatically compare and filter all available loan options to best suit your needs. With a marketplace, you’re sure to find the most competitive borrowing options and secure financing as quickly as possible.

How does a personal loan marketplace work?

Personal loan marketplaces filter and search through a network of lenders to find you a match based on your preferences. Lenders include both traditional institutional lenders and individual investors willing to lend their money. Even better, getting funding through a marketplace can be more accessible, as many marketplaces like MoneyLion show more than just a credit score.

The loan process

The lending process on a marketplace is slightly different from the traditional process. To get started, you will first need to find an online marketplace and then complete the application. The app will help the platform better understand what you are looking for to properly filter through its network of possible loans. A few seconds after submitting your application, the marketplace refines your search and displays your best quotes. From there, you can choose the loan that seems best to you. Then, all payments and transactions will be processed digitally by the platform.

Competitive rates

Because marketplaces have a wider variety of lenders, you have more choice. Therefore, you will have a better chance of finding the most competitive interest rates. Interest rates are an important factor when choosing where to get a personal loan, as the cost of borrowing can save or lose you money. Searching through the different personal loan options and comparing rates can be time consuming. A loan market automates this search.

Get financing even with poor credit

Thanks to the personal loan markets, even those with poor credit have the opportunity to obtain financing. Depending on the market you are using, you will differentiate the factors considered before getting approved for a loan. Some markets offer loans without a credit check, and others will look at both your credit history and other factors. If you have a low credit score but need a personal loan, a market may be your best option.

Convenience

One of the biggest benefits of a personal loan marketplace like MoneyLion is convenience. Not only does this save you hours of researching and comparing options, but you can also receive your funds almost immediately. The registration process is fast and will give you results in less than 30 seconds. Even if you’re considering personal loans from traditional institutions, it’s worth checking out a loan market to see what rates they offer.

Peer-to-peer lending vs. Marketplace

Often the terms peer-to-peer (P2P) lending and market lending will be used interchangeably. However, the two differ. Unlike market loans which are pooled by individual and institutional investors, P2P loans are only funded by individuals.

How to Make the Most of a Personal Loan Market

Using a personal loan marketplace has many advantages. Make the most of a personal loan market by following these tips:

Use multiple marketplaces: Using several marketplaces is a good idea before taking out a loan. Because marketplaces are programmed to find you the best deals from their network of lenders, marketplaces like MoneyLion may give you different results. Given the speed and ease of obtaining quotes on one market, it is worth comparing offers on several markets.

Apply several times: Because marketplaces are automated to give you results based on your application, responding differently each time will cause results to vary. If you are able to be flexible with some of your needs, such as the time frame or the amount of annual payments you want to make, you may find yourself faced with more competitive loan options.

Best uses for a personal loan

One of the reasons personal loans are so great is that they can ultimately be used for just about any purpose. However, just because you can doesn’t mean you always have to. Here are some of the best uses for a personal loan.

Debt Consolidation: Debt repayment is one of the main reasons for taking out a personal loan and can be a great tool. Rather than making separate monthly payments, you can pay off your debt in full using a personal loan and then continue to make payments on the loan while being free of other debts.

Emergency: Life can be unpredictable and sometimes you will find yourself in an emergency situation. Whether it’s a leaky roof or a sick family member, personal loans can be a great safety net to protect your health and safety.

Frequently Asked Questions

Which bank easily grants personal loans?

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Which bank easily grants personal loans?

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Jungyun Kim

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USAA is considered the easiest bank to get a personal loan because it has no minimum credit score requirement.

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What is the easiest loan to get?

1

What is the easiest loan to get?

asked

Jungyun Kim

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Generally, payday loans and other short-term loans are the easiest to obtain.

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